China Mobile interim profit disappoints investors

Aug 16, 2012

Net profit rose to 62.2 billion yuan ($9.77 billion) in the six months to June 30 compared to 61.28 billion yuan in the same period last year, the world's largest mobile carrier by number of accounts said.

"We faced a number of severe challenges including the increase in mobile penetration, intensified competition, as well as impact of new technologies and services that are replacing traditional communications services," it said.

"The group continued to lead the industry in terms of profitability."

The result was lower than analysts' expectations and the company's shares fell 5.03 percent to HK$86.85 on the Hong Kong stock exchange, which closed 0.45 percent lower.

In the first half of the year, the company's total customers increased 10.7 percent to more than 680 million, including an increase of 15.87 million 3G users to more than 67 million.

China Mobile said it would have 20,000 TD-LTE base stations, a new generation of wireless broadband technology, covering 13 cities in the second half of 2012, Dow Jones Newswires reported.

As wealthier Chinese in big cities snap up multi-functioning mobile phones and those living in remoter areas buy their first basic handsets, the country's biggest phone carrier would seemingly be on a roll. Yet even as China ...

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